India Real Estate PE Investments Drop 32% to $1.5B: Savills
Private equity investments in India's real estate sector have declined by 32% to $1.5 billion in the July-September quarter, according to Savills India. The office and data center segments lead the inflows.
India Real EstatePrivate EquitySavills IndiaOffice AssetsData CentersReal Estate NewsOct 09, 2025
The decline in PE investments is attributed to a moderation in institutional investments, which have been on a downward trend since the peak in 2020. However, the overall inflows for the January-September period of 2025 have reached USD 3.9 billion, indicating a relatively stable investment environment.
In a detailed breakdown of the investments, office assets have garnered the largest share, accounting for USD 0.6 billion or 39% of the total inflows. Data centers closely follow with 38% of the investments, while the residential segment makes up 20% of the PE investments.
Savills India, a leading real estate consultant, highlighted that despite the moderation in institutional investments, the 2025 inflows remain broadly stable. This stability reinforces India's appeal as a long-term real estate investment destination.
Historical data shows that PE investments in the Indian real estate sector have fluctuated over the years. In 2024, the inflows stood at USD 4.3 billion, while in 2023, they were USD 3.9 billion. The years 2022 and 2021 saw investments of USD 3.4 billion each, and in 2020, the peak year, PE investments reached USD 6.6 billion.
The consistent appeal of India as a real estate investment destination is driven by several factors, including a growing economy, a young population, and increasing urbanization. These factors are expected to continue supporting the real estate market, making it an attractive option for both domestic and international investors.
Savills India's analysis underscores the resilience of the Indian real estate sector, despite the recent decline in PE investments. The office and data center segments, in particular, are expected to continue driving growth, driven by the increasing demand for modern office spaces and the rapid expansion of the tech industry.
In conclusion, while the recent drop in PE investments is notable, the overall stability in the real estate market suggests that India remains a compelling investment opportunity. Investors and developers are likely to continue exploring new opportunities in the sector, particularly in the office and data center segments, which are poised for further growth in the coming years.
Frequently Asked Questions
What is the current status of private equity investments in India's real estate sector?
Private equity investments in India's real estate sector have declined by 32% to USD 1.5 billion in the July-September quarter of 2025, according to Savills India.
Which segments are leading the PE investments in India's real estate market?
The office and data center segments are leading the PE investments, with office assets accounting for 39% of the total inflows and data centers making up 38%.
How do the current PE investments compare to previous years?
The PE investments have fluctuated over the years, with a peak of USD 6.6 billion in 2020. In 2024, the inflows were USD 4.3 billion, and in 2023, they were USD 3.9 billion.
What factors contribute to India's appeal as a real estate investment destination?
India's appeal as a real estate investment destination is driven by a growing economy, a young population, and increasing urbanization.
What is the outlook for the Indian real estate market in the coming years?
The outlook for the Indian real estate market is positive, with the office and data center segments expected to continue driving growth due to increasing demand for modern office spaces and the rapid expansion of the tech industry.
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